CSSSC - Annual Report 2024 | FinancialReports.eu

Stock Code ： 2025

Chien Shing Stainless Steel Co., Ltd. Individual Financial Statements For the Years Ended December 31,2024 and 2023 (Independent auditor’s report included)

Company address: No.222 Industry Road, Hsiao Pyi Li, Madou Dist., Tainan City Company telephone: (06)570-3271

Individual Financial Statements Table of Contents

Table of Contents
Item	Page	Note
I. Cover	1	-
II. Table of Contents	2	-
III. Independent auditor’s report	3－4	-
IV. Individual Balance Sheet	5	-
V. Individual Statement of Comprehensive Income	6－7	-
VI. Individual Statement of Changes in Equity	8	-
VII. Individual Cash Flow Statements	9-10	-
VIII. Notes to Individual Financial Statements	11
(I) Historyof Company	11	I
(II) Approval Date and Procedures of the Financial Statements	11	II
(III) Application of New and Revised International Financial ReportingStandards	11－14	III
(IV) Summaryof Significant AccountingPolicies	14－25	IV
(V) Critical Accounting Judgements and Key Sources of Estimation and Uncertainty	25	V
(VI) Summaryof Significant AccountingItems	25－48, 56	VI-XXIII
(VII) Related partytransaction	48－50	XXIV
(VIII) Pledged Assets	50	XXV
(IX) Significant Contingent Liabilities and Unrecognized Commitments	50－51	XXVI
(X) Others	51	XXVII
(XI) Additional Disclosures
1. Information about significant transactions	51－52, 53－54	XXVIII
2. Information about investees	52	XXVIII
3. Information on investments in mainland China	52	XXVIII
4. Information on main investors	52, 55	XXVIII
(XII) Segments Information	52	XXIX
IX. Details of Significant AccountingItems	57－71	-

CPAs’ Audit Report

To Chien Shing Stainless Steel Co., Ltd.:

Audit opinion

We have audited the accompanying balance sheet of Chien Shing Stainless Steel Co., Ltd. (the “Company”) as of December 31, 2024 and 2023 and the statements of comprehensive income, changes in equity and cash flows for the years then ended, and the notes to the financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying financial statements present fairly, in all material respects, the consolidated financial position of the Company as of December 31, 2024 and 2023, and its financial performance and its cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) endorsed and issued into effect by the Financial Supervisory Commission (“FSC”).

Basis for Opinion

We conducted our audits in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and auditing standards of the Republic of China. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with The Norm of Professional Ethics for Certified Public Accountant of the Republic of China and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the Company for the year 2024. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We decided the key audit matters are the followings:

Valuation of Inventories

The amount of inventory of the Company is material to the financial statements. The inventory is valued at the lower of the cost of inventory and the net realizable value. Since the management judgment is involved when deciding the net realizable value parameter assumptions, the inventory valuation is listed as a key audit matter. For the uncertainty of accounting policies, significant accounting judgments, estimation, and assumptions related to the valuation of inventories, and relevant disclosures, please refer to Notes 4, 5 and 10 to the financial statements.

We have performed the main audit procedures against the said matters as below:

I. Understanding and evaluating the appropriateness of the Company's policy for losses from inventory valuation decline and internal control.
II. Obtaining the inventory valuation statement and check the accuracy and reasonableness of the net realizable value calculated by sampling.

Other Matters

The parent company only financial statements of the Company for the year ended December 31, 2023 were audited by other independent auditors, and an unqualified opinion was issued on March 14, 2024.

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the IFRS, IAS, IFRIC, and SIC endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

While preparing the financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance (including members of the Audit Committee) are responsible for overseeing the Company’s financial reporting process.

Auditors’ Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the auditing standards of the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with the auditing standards of the Republic of China, we exercise professional judgment and professional skepticism throughout the audit. We also:

I. Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
II. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.
III. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
IV. Conclude on the appropriateness of management’s use of the going concern basis of accounting and. based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the consolidated financial statements or. if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Company to cease to continue as a going concern.
V. Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements for the year ended December 31, 2023 and are therefore the key audit matters. We describe these matters in our auditors' report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Deloitte & Touche

CPA Hung-Ju Liao CPA Chi-Chen Li

The Financial Supervisory Commission The Securities and Futures Commission R.O.C. Approval No. for the Approval No. for the Certification: Certification: Tai-Cai-Zheng-Liu-Zi No. 0920123784 Jing Guang Zheng Shen Zhi No. 0990031652

March 14, 2025

Chien Shing Stainless Steel Co., Ltd Balance Sheet

December 31, 2024 and 2023

Unit: NTD thousand

Code 1100 1110 1170 1200 130X 1410 1470 11XX 1517 1600 1760 1780 1840 1915 1920 15XX 1XXX C o d e 2150 2170 2219 2250 2399 21XX 2570 2640 25XX 2XXX 3110 3350 3400 3XXX	Asset Current assets Cash and cash equivalents (Note 4 and 6) Financial assets measured at FVTPL - current (Note 4 and 7 Account receivable (Note4, 9 and 18) Other receivables (Note 4) Inventories (Note4, 5 and 10) Prepayments (Note 24) Other current assets Total current assets Non-current assets Measured at fair value through other comprehensive income (Note 4 and 8) Property, plant and equipment (Note 4, 11, 24 and 25) Net investment property (Note 4 and 12) Intangible assets (Note 4) Deferred tax assets (Note 4 and 20) Prepayments for equipment Refundable deposits (Note 4) Total non-current assets Total assets Liabilities and equity Current liabilities Note payable (Note 13) Accounts payable (Note 13) Other payables (Note 14) Provision for liabilities - current (Note 4 and 15) Other current liabilities Total current liabilities Non-current liabilities Deferred tax liabilities (Note 4 and 20) Net defined benefit liabilities - non-current (Note 4 and 16) Total non-current liabilities Total liabilities Equity attributable to owners of the parent company (Note 17) Ordinary share capital Deficit to be compensated Other equities Total equity Total liabilities and equities		December 31, 2024 Amount ％ $ 100,981 7 82,520 5 18,400 1 840 - 646,620 42 215,678 14 370 - 1,065,409 69 - - 358,030 23 95,049 6 22 - 473 - 30,953 2 10 - 484,537 31 $ 1,549,946 100 $ 12,265 1 36,429 3 33,968 2 - - 371 - 83,033 6 - - 2,363 - 2,363 - 85,396 6 1,726,605 111 257,346 ) ( 17 ) 4,709) - 1,464,550 94 $ 1,549,946 100	December 31, 2024 Amount ％ $ 100,981 7 82,520 5 18,400 1 840 - 646,620 42 215,678 14 370 - 1,065,409 69 - - 358,030 23 95,049 6 22 - 473 - 30,953 2 10 - 484,537 31 $ 1,549,946 100 $ 12,265 1 36,429 3 33,968 2 - - 371 - 83,033 6 - - 2,363 - 2,363 - 85,396 6 1,726,605 111 257,346 ) ( 17 ) 4,709) - 1,464,550 94 $ 1,549,946 100		December 31, 2023	December 31, 2023	December 31, 2023
			Amount $ 100,981 82,520 18,400 840 646,620 215,678 370 1,065,409 - 358,030 95,049 22 473 30,953 10 484,537 $ 1,549,946 $ 12,265 36,429 33,968 - 371 83,033 - 2,363 2,363 85,396 1,726,605 257,346 ) 4,709) 1,464,550 $ 1,549,946			Amount $ 205,087 278,225 - - 566,233 227,123 514 1,277,182 51,574 368,473 96,793 42 2,399 8,462 2 527,745 $ 1,804,927 $ 8,961 1,774 23,451 59,959 219 94,364 116 5,963 6,079 100,443 2,811,673 1,085,068 ) 22,121) 1,704,484 $ 1,804,927		％
		( (			( (		11 16 - - 31 13 - 71 3 20 5 - - 1 - 29 100 1 - 1 3 - 5 - 1 1 6 156 ( 60 ) ( 2) 94 100

The enclosed notes are an integral part of this financial report. (Refer to the audit report from Deloitte & Touche dated March 14, 2025)

Chairman: Fu-Chuan Wei

Managerial Officer: Li-Yun Chiu

Head of Accounting: Li-Yun Chiu

Chien Shing Stainless Steel Co., Ltd

Statement of Comprehensive Income

For the Years Ended December 31, 2024 and 2023

Unit: NTD thousand but EPS in NTD

Code 4000 Net operating revenue (Note 18and 24) 5000 Operating cost (Note 10, 19 and 24) 5900 Operating loss Operating expenses (Note 19 and 24) 6100 Selling and marketing expenses 6200 Administrative expenses 6000 Total operating expenses 6500 Net other income and expenses (Note 19) 6900 Net operating loss Non-operating income and expense (Note 19) 7100 Interest income 7010 Other income 7020 Other gains or losses 7050 Financial costs 7000 Total non-operating income and expenses 7900 Net income (loss) before tax of continuing operations 7950 Income tax expense (Note 4 and 20) 8200 Net profit (loss) for the year (Continued in the next page)		2024

(Continued from the previous page)

Code Other comprehensive income Items that will not be reclassified subsequently to profit or loss: 8311 Re-measurement of the defined benefit plan 8316 Unrealized valuation gains (losses) on investments in equity instruments as at fair value through other comprehensive income 8349 Income tax relating to items that will not be reclassified subsequently to profit or loss 8300 Other comprehensive income, net after tax 8500 Total comprehensive income Earnings (net loss) per share (Note 21) 9750 Basic earnings per share 9810 Diluted earnings per share		2024		％ - - - - 23)	2023
		Amount $ 45 5,984 9) 6,020 $ 239,934) $ 1.42) $ 1.42)			Amount ( $ 644 ) 9,859 129 9,344 $ 237,562 $ 1.32 $ 1.32		％
	( ( ( (		(				- 1 - 1 32

The enclosed notes are an integral part of this financial report. (Refer to the audit report from Deloitte & Touche Taiwan dated March 14, 2025)

Fu-Chuan Wei Managerial Officer: Li-Yun Chiu Head of Accounting: Li-Yun Chiu

Chien Shing Stainless Steel Co., Ltd

Statement of Changes in Equity

For the Years Ended December 31, 2024 and 2023

Unit: NTD thousand

Code A1 Balance on January 1, 2023 D1 Net income of 2022 D3 Other comprehensive income of 2023 (after tax) D5 Total comprehensive income of 2023 Z1 Balance on December 31, 2023 F1 Capital reduction to offset accumulated deficits D1 Net loss of 2024 D3 Other comprehensive income of 2024 (after tax) D5 Total comprehensive income of 2024 Q1 Disposal of investments in equity instruments as at fair value through other comprehensive income Z1 Balance on December 31, 2024	Share capital N u m b e r o f s h a r e s ( i n t h o u s a n d s h a r e s ) Amount 281,167 $ 2,811,673 - - - - - - 281,167 2,811,673 ( 108,507 ) ( 1,085,068 ) - - - - - - - - 172,660 $ 1,726,605	Share capital N u m b e r o f s h a r e s ( i n t h o u s a n d s h a r e s ) Amount 281,167 $ 2,811,673 - - - - - - 281,167 2,811,673 ( 108,507 ) ( 1,085,068 ) - - - - - - - - 172,660 $ 1,726,605	Deficit to be compensated ( $ 1,312,771 ) 228,218 ( 515) 227,703 ( 1,085,068 ) 1,085,068 ( 245,954 ) 36 ( 245,918) ( 11,428) ($ 257,346)	Other items of equity Unrealized valuation gain (loss) on financial assets measured at FVTOCI ( $ 31,980 ) - 9,859 9,859 ( 22,121 ) - - 5,984 5,984 11,428 ($ 4,709)		Total Equity
	N u m b e r o f s h a r e s ( i n t h o u s a n d s h a r e s ) 281,167 - - - 281,167 ( 108,507 ) - - - - 172,660
					$ 1,466,922 228,218 9,344 237,562 1,704,484 - ( 245,954 ) 6,020 ( 239,934) - $ 1,464,550

The enclosed notes are an integral part of this financial report. (Refer to the audit report from Deloitte & Touche dated March 14, 2025)

Fu-Chuan Wei

Managerial Officer: Li-Yun Chiu

Head of Accounting: Li-Yun Chiu

Chien Shing Stainless Steel Co., Ltd

Cash Flow Statements

For the Years Ended December 31, 2024 and 2023

Unit: NTD thousand

Code Cash flow from operating activities A10000 Net income (loss) before tax for the year A20010 Adjusted item: A20100 Depreciation expenses A20200 Amortization expenses A20400 Net gain on financial assets and liabilities measured at FVTPL A20900 Financial costs A21200 Interest income A21300 Dividend revenue A22500 Losses on disposals of property, plant and equipment A22700 Gain on disposal of investment property A23700 Losses from inventory valuation decline (gains on recovery) A24100 Losses from foreign currency exchange A29900 Loss on onerous purchase contract A30000 Net changes in operating assets and liabilities A31150 Accounts receivable A31180 Other receivables A31200 Inventories A31230 Prepayments A31240 Other current assets A32130 Note payable A32150 Accounts payable A32180 Other payables A32230 Other current liabilities A32240 Defined benefit liability A33000 Cash used for operating activities A33100 Interest received A33300 Interest paid A33500 Income tax paid AAAA Net cash inflows (outflows) from operating activities		2024 $ 244,153 ) 38,814 20 1,502 ) 246 1,433 ) 7,147 ) 175 - 4,047 2,152 - 18,400 ) 840 ) 84,434 ) 51,577 ) 144 3,304 34,655 9,658 152 3,555) 319,674 ) 1,433 246 ) - 318,487)		2023
	( ( ( ( ( ( ( ( ( ( ( (		( ( ( ( ( ( ( ( ( ( ( ( ( (	$ 243,417 37,406 51 69,864 ) - 3,342 ) 10,348 ) 5 394,777 ) 249 ) 32 59,959 - 587 306,113 ) 115,873 ) 343 ) 2,930 1,570 14,605 ) 102 ) 151) 569,810 ) 3,342 - 15,099) 581,567)

(Continued in the next page)

(Continued from the previous page)

Code Cash flow from investing activities B00100 Acquisition of financial assets measured at FVTPL B00200 Sales of financial assets measured at FVTPL B00020 Sales of financial assets measured at FVTOCI B02700 Acquisition of property, plant and equipment B02800 Disposal of property, plant and equipment B03700 Increase in refundable deposits B03800 Decrease in refundable deposits B05500 Disposal of investment property B07100 Increase in prepayments for equipment B07600 Dividends received B09900 Share payment refunded from the capital decrease of financial assets measured at FVTPL BBBB Net cash inflow from investing activities DDDD Effect of exchange rate changes on cash and cash equivalents EEEE Decrease in cash and equivalents in the period E00100 Cash and cash equivalents at the beginning of the year E00200 Cash and cash equivalents at the end of the year		2024 $ 49,493 ) 240,400 57,558 14,927 ) 714 10 ) 2 - 33,586 ) 7,147 6,300 214,105 276 104,106 ) 205,087 $ 100,981		2023
	( ( ( ( (		( ( ( ( (	$ 243,267 ) 139,996 - 6,756 ) 173 - - 418,845 11,947 ) 10,348 - 307,392 32 ) 274,207 ) 479,294 $ 205,087

The enclosed notes are an integral part of this financial report. (Refer to the audit report from Deloitte & Touche dated March 14, 2025)

Fu-Chuan Wei

Managerial Officer: Li-Yun Chiu Head of Li-Yun Chiu

Chien Shing Stainless Steel Co., Ltd.

Notes to the Financial Statements

For the Years January 1 through December 31, 2024 and 2023

(Expressed in thousands of New Taiwan dollars, unless otherwise stated)

I. Company History

Chien Hsing Stainless Steel Co., Ltd. (hereinafter referred to as “the Company”) was incorporated in May 1972. Its primary business activities include the processing, manufacturing, and trading of various stainless steel products.

The Company’s shares have been listed on the Taiwan Stock Exchange since February 1996.

Due to operational needs, the Company, through a resolution passed by the Board of Directors in October 2017, approved a simplified merger with its wholly owned subsidiaries Molimei Technology Co., Ltd., Chien Yi Investment Co., Ltd., and Chien Ying Investment Co., Ltd. The Company was the surviving entity, and the aforementioned subsidiaries were dissolved.

These financial statements are presented in the Company’s functional currency, the New Taiwan dollar (NT$).

II. Approval Date and Procedures of the Financial Statements

These financial statements were approved by the Board of Directors on March 14, 2025.

III. Application of New and Revised International Financial Reporting Standards

(I) First-time adoption of International Financial Reporting Standards (IFRSs), International Accounting Standards (IASs), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) endorsed and issued into effect by the Financial Supervisory Commission (hereinafter referred to as the “FSC-endorsed IFRSs”)

The application of the revised FSC-endorsed IFRSs does not result in any material changes to the Company’s accounting policies.

(II) FSC-endorsed IFRSs Applicable in 2025

Newly Issued / Amended / Revised Standards and Effective Date Issued Interpretations by IASB Amendments to IAS 21 “Lack of Exchangeability” January 1, 2025 (Note 1) The amendments to the application of the January 1, 2026 (Note

Newly Issued / Amended / Revised Standards and Effective Date Issued Interpretations by IASB classification of financial assets in the 2) "Classification and Measurement of Financial Instruments" of IFRS 9 and IFRS 7 are as follows:

Note 1: Applicable to annual reporting periods beginning on or after January 1, 2025. When the amendments are first applied, comparative periods shall not be restated. The impact shall be recognized in retained earnings or in the exchange differences on translation of foreign operations recognized in equity (as applicable), as well as in the related affected assets and liabilities as of the date of initial application.
Note 2: The amendments are applicable to annual reporting periods beginning on or after January 1, 2026. Early application is permitted for annual reporting periods beginning on or after January 1, 2025. When the amendments are first applied, retrospective application is required; however, comparative periods need not be restated. The impact of the initial application shall be recognized as of the date of initial application. However, if the entity is able to restate comparative information without the use of hindsight, it may elect to do so.

Except for the aforementioned impacts, as of the approval date of the financial statements, the Company has assessed that the other amendments to standards and interpretations will not have a material impact on its financial position or financial performance.

(III) IFRS Standards Issued by the IASB but Not Yet Endorsed and Promulgated by the Financial Supervisory Commission (FSC)
Newly Issued / Amended / Revised Standards and Effective Dates Issued Interpretations by the IASB (Note)
“Annual Improvements to IFRS Accounting January 1, 2026 Standards – Volume 11”
Amendments to IFRS 9 and IFRS 7 – Amendments January 1, 2026 Regarding Derecognition of Financial Liabilities under the “Classification and Measurement of Financial Instruments” are as follows:
Amendments to IFRS 9 and IFRS 7 – “Contracts January 1, 2026 Referencing Nature-dependent Electricity”
Amendments to IFRS 10 and IAS 28 – “Sale or Not yet determined

Newly Issued / Amended / Revised Standards and Effective Dates Issued Interpretations by the IASB (Note) Contribution of Assets between an Investor and its Associate or Joint Venture” IFRS 17 “Insurance Contracts” January 1, 2023 Amendments to IFRS 17 January 1, 2023 Amendments to IFRS 17 – “Initial Application of January 1, 2023 IFRS 17 and IFRS 9—Comparative Information” IFRS 18 “Presentation and Disclosure in Financial January 1, 2027 Statements” IFRS 19 “Subsidiaries without Public January 1, 2027 Accountability: Disclosures”

Note: Unless otherwise specified, the above newly issued/amended/revised standards or interpretations are effective for annual reporting periods beginning on or after the respective dates.

IFRS 18 “Presentation and Disclosure in Financial Statements”

IFRS 18 will replace IAS 1 “Presentation of Financial Statements.” The main changes under this standard include:

The income statement shall classify income and expenses into the categories of operating, investing, financing, income tax, and discontinued operations.
The income statement shall present subtotals and totals for operating profit or loss, profit or loss before financing and income tax, and total profit or loss.
Guidance is provided to strengthen aggregation and disaggregation requirements: the Company shall identify assets, liabilities, equity, income, expenses, and cash flows arising from individual transactions or other events, and classify and aggregate them based on shared characteristics, so that each line item presented in the primary financial statements has at least one similar characteristic. Items with dissimilar characteristics shall be disaggregated in the primary financial statements and in the notes. The Company shall label such items as “other” only when no more informative label can be identified.
Enhanced disclosure of management-defined performance measures: when the Company engages in public communications outside the financial statements, and when it communicates management’s perspective on an aspect of the Company’s overall financial performance to users of the financial statements, it shall disclose relevant information about such

management-defined performance measures in a single note. This includes a description of the measure, how it is calculated, a reconciliation to subtotals or totals specified in IFRS accounting standards, and the related income tax and non-controlling interest effects of the reconciling items.

In addition to the above impacts, as of the approval date of this financial report, the Company continues to assess the effects of various standard amendments and interpretations on its financial position and performance. Related impacts will be disclosed upon completion of the assessment.

IV. Summary of Significant Accounting Policies

(I) Statement of Compliance

The financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards (IFRS), as endorsed and issued into effect by the Financial Supervisory Commission (FSC).

(II) Basis of Preparation

Except for financial instruments measured at fair value and net defined benefit liabilities recognized as the present value of defined benefit obligations less the fair value of plan assets, the financial statements have been prepared on a historical cost basis.

Fair value measurements are categorized into Levels 1 to 3 based on the observability and significance of the inputs used:

Level 1 inputs: Quoted prices (unadjusted) in active markets for identical assets or liabilities that are accessible at the measurement date.
Level 2 inputs: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).
Level 3 inputs: Unobservable inputs for the asset or liability.
(III) Criteria for Classification of Assets and Liabilities as Current or Non-Current Current assets include:
Assets held primarily for trading purposes;
Assets expected to be realized within 12 months after the balance sheet date;
- and
Cash (excluding those restricted from being exchanged or used to settle a

liability for more than 12 months after the balance sheet date).

Current liabilities include:

Liabilities held primarily for trading purposes;
Liabilities due within 12 months after the balance sheet date; and
Liabilities that do not have substantial rights to defer the settlement period to at least 12 months after the balance sheet date.

Assets or liabilities not classified as current are classified as non-current.

(IV) Foreign Currency

When the Company prepares its financial reports, transactions in currencies other than the Company's functional currency (foreign currencies) are recorded in the functional currency at the exchange rate on the transaction date.

Foreign currency monetary items are retranslated at the closing exchange rate on each balance sheet date. Exchange differences arising from the settlement or retranslation of monetary items are recognized in profit or loss in the year in which they arise.

Foreign currency non-monetary items measured at historical cost are translated at the exchange rate on the transaction date and are not retranslated.

(V) Inventories

Inventories include raw materials, supplies, work-in-progress, finished goods, and merchandise. Inventories are measured at the lower of cost and net realizable value. In comparing cost and net realizable value, individual items are used, except for inventories of the same category. Net realizable value refers to the estimated selling price in the normal course of business after deducting the estimated cost required to be completed, and the estimated cost required to complete the sale. The cost of inventories is calculated using the weighted average method.

(VI) Property, Plant, and Equipment

Property, plant, and equipment are recognized at cost and subsequently measured at cost less accumulated depreciation and accumulated impairment losses.

Property, plant, and equipment under construction are recognized at cost less accumulated impairment losses. Cost includes professional service fees and borrowing costs that meet capitalization criteria. Such assets are measured

at the lower of cost and net realizable value before reaching the expected usable condition, and the sale price and cost are recognized in profit or loss. When such assets are completed and reach the expected usable condition, they are classified into the appropriate category of property, plant, and equipment, and depreciation begins.

Except for land held for the Company’s own use, property, plant, and equipment are depreciated over their useful lives on a straight-line basis, with each significant portion being depreciated separately. The Company reviews the estimated useful lives, residual values, and depreciation methods at the end of each fiscal year at a minimum. Changes in accounting estimates are applied prospectively.

Upon derecognition of property, plant, and equipment, the difference between the net proceeds from disposal and the carrying amount of the asset is recognized in profit or loss.

(VII) Investment Property

Investment property refers to property held to earn rental income, for capital appreciation, or for both purposes. Investment property also includes land held for currently undetermined future use.

Investment property is initially measured at cost (including transaction costs), and subsequently measured at cost less accumulated depreciation and accumulated impairment losses.

Investment property is depreciated using the straight-line method.

Upon derecognition of an investment property, the difference between the net disposal proceeds and the carrying amount of the asset is recognized in profit or loss.

(VIII) Intangible Assets

1. Separately Acquired

Separately acquired intangible assets with finite useful lives are initially measured at cost and subsequently measured at cost less accumulated amortization and accumulated impairment losses. Intangible assets are amortized on a straight-line basis over their useful lives. The Company reviews the estimated useful lives, residual values, and amortization methods at the end of each fiscal year at a minimum, and applies the effects of any changes in accounting estimates prospectively.

2. Derecognition

Upon derecognition of an intangible asset, the difference between the net disposal proceeds and the carrying amount of the asset is recognized in profit or loss for the period.

(IX) Impairment of Property, Plant and Equipment, Investment Property, and Intangible Assets

The Company assesses at each balance sheet date whether there is any indication that property, plant and equipment, investment property, and intangible assets may be impaired. If any such indication exists, the recoverable amount of the asset is estimated. Where it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. The recoverable amount is the higher of fair value less costs of disposal and value in use. If the recoverable amount of an individual asset or cash-generating unit is lower than its carrying amount, the carrying amount of the asset or cash-generating unit is reduced to its recoverable amount, and the impairment loss is recognized in profit or loss.

When an impairment loss is subsequently reversed, the carrying amount of the asset or cash-generating unit is increased to the revised recoverable amount, provided that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized in prior years (after deducting amortization or depreciation). A reversal of an impairment loss is recognized in profit or loss.

(X) Financial Instruments

Financial assets and financial liabilities are recognized in the balance sheet when the Company becomes a party to the contractual provisions of the instrument.

At initial recognition, financial assets and financial liabilities that are not measured at fair value through profit or loss are measured at fair value plus transaction costs that are directly attributable to the acquisition or issue of the financial asset or financial liability. Transaction costs directly attributable to the acquisition or issue of financial assets or financial liabilities measured at fair value through profit or loss are recognized immediately in profit or loss.

Financial Assets

Regular way purchases or sales of financial assets are recognized and derecognized using trade date accounting.

(1) Measurement Categories

The Company classifies its financial assets into the following categories: financial assets measured at fair value through profit or loss (FVTPL), financial assets measured at amortized cost, and investments in equity instruments measured at fair value through other comprehensive income (FVOCI).

A. Financial Assets Measured at Fair Value Through Profit or Loss (FVTPL)

Financial assets measured at FVTPL are mandatorily measured at fair value through profit or loss. Such assets include investments in equity instruments that are not designated to be measured at fair value through other comprehensive income.

Financial assets measured at FVTPL are measured at fair value. Dividends and interest income derived from these assets are recognized in other income and interest income, respectively. Gains or losses arising from remeasurement are recognized in other gains and losses. For the method of determining fair value, please refer to Note 23.

B. Financial Assets Measured at Amortized Cost

If the Company’s financial assets meet both of the following conditions, they are classified as financial assets measured at amortized cost:

a. They are held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and
b. The contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Financial assets measured at amortized cost (including cash, accounts receivable, other receivables, and refundable deposits) are initially recognized at fair value and subsequently measured at amortized cost using the effective interest method, less any

impairment losses. Foreign exchange gains or losses are recognized in profit or loss.

Except under the following two circumstances, interest income is calculated by applying the effective interest rate to the gross carrying amount of the financial asset:

a. For purchased or originated credit-impaired financial assets, interest income is calculated by applying the credit-adjusted effective interest rate to the amortized cost of the financial asset.
b. For financial assets that are not purchased or originated as credit-impaired but subsequently become credit-impaired, interest income is calculated by applying the effective interest rate to the amortized cost of the asset beginning in the reporting period following the recognition of credit impairment.

Credit-impaired financial assets refer to cases where the issuer or debtor is experiencing significant financial difficulty, has defaulted, is highly likely to file for bankruptcy or undergo other financial restructuring, or where the active market for the financial asset has disappeared due to financial difficulties.

C. Investments in Equity Instruments Measured at Fair Value through Other Comprehensive Income

At initial recognition, the Company may make an irrevocable election to designate investments in equity instruments that are neither held for trading nor recognized as contingent consideration in a business combination as measured at fair value through other comprehensive income.

Investments in equity instruments measured at fair value through other comprehensive income are subsequently measured at fair value. Changes in fair value are recognized in other comprehensive income and accumulated in other equity. Upon disposal of the investment, the cumulative gain or loss is transferred directly to retained earnings and is not reclassified to profit or loss.

Dividends from investments in equity instruments measured at fair value through other comprehensive income are recognized in profit or loss when the Company’s right to receive the payment is established, unless the dividend clearly represents a recovery of part of the cost of the investment.

(2) Impairment of Financial Assets

At each balance sheet date, the Company assesses impairment losses on financial assets measured at amortized cost (including accounts receivable) based on expected credit losses.

For accounts receivable, the allowance for impairment is recognized based on lifetime expected credit losses. For other financial assets, the Company first assesses whether credit risk has increased significantly since initial recognition. If not, an allowance is recognized based on 12-month expected credit losses. If credit risk has increased significantly, an allowance is recognized based on lifetime expected credit losses.

Expected credit losses are the probability-weighted average of credit losses based on the risk of default. Twelve-month expected credit losses represent the expected credit losses arising from possible default events within 12 months after the reporting date, while lifetime expected credit losses represent the expected credit losses arising from all possible default events over the expected life of the financial instrument.

Without taking the collateral held into consideration, the Company determines that a default has occurred for a financial asset when the following conditions are met for the purpose of internal credit risk management:

A. Internal or external information indicates that the debtor is unlikely to fulfill its debt obligations.
B. The asset is more than 90 days past due, unless there is reasonable and supportable information indicating that a more appropriate default criterion is available.

Impairment losses on all financial assets are recognized by reducing the carrying amount through an allowance account.

However, for investments in equity instruments measured at fair value through other comprehensive income, the allowance is recognized in other comprehensive income and does not reduce the carrying amount of the asset.

(3) Derecognition of Financial Assets

The Company derecognizes a financial asset only when the contractual rights to the cash flows from the financial asset expire, or when the financial asset has been transferred and substantially all the risks and rewards of ownership have been transferred to another entity.

Upon derecognition of a financial asset measured at amortized cost in its entirety, the difference between the carrying amount and the consideration received is recognized in profit or loss. Upon derecognition of an investment in an equity instrument measured at fair value through other comprehensive income in its entirety, the cumulative gain or loss is transferred directly to retained earnings and is not reclassified to profit or loss.

2. Financial Liabilities

(1) Subsequent Measurement

All of the Company’s financial liabilities are measured at amortized cost using the effective interest method.

(2) Derecognition of Financial Liabilities

When a financial liability is derecognized, the difference between the carrying amount and the consideration paid (including any non-cash assets transferred or liabilities assumed) is recognized in profit or loss.

(XI) Provisions

Provisions are recognized based on the best estimate of the expenditure required to settle the present obligation at the balance sheet date, taking into account the risks and uncertainties surrounding the obligation. Provisions are measured at the present value of the estimated cash flows required to settle the obligation.

Onerous Contracts

When the Company expects that the unavoidable costs of fulfilling a

contract exceed the expected economic benefits to be derived from it, a present obligation arising from the onerous contract is recognized as a provision. In assessing whether a contract is onerous, the cost of fulfilling the contract includes both the incremental costs of fulfilling the contract and an allocation of other costs that are directly related to contract performance.

(XII) Revenue Recognition

After the Company identifies the performance obligations in the customer contract, the transaction price is allocated to each performance obligation, and revenue is recognized when each performance obligation is satisfied.

Income from product sales

Revenue from sales of goods is derived from the sale of cold-rolled stainless steel coils. Revenue and trade receivables are recognized at the point when the goods have arrived at the customer’s designated location, at which time the customer has the right to determine the price and use of the goods, bears the primary responsibility for resale, and assumes the risk of obsolescence.

In the case of processing using customer-supplied materials, as control over the processed products is not transferred, revenue is not recognized upon delivery of the materials.

(XIII) Leases

The Company assesses whether a contract is, or contains, a lease on the contract commencement date.

The Company is the lessor

When the lease transfers substantially all the risks and rewards incidental to ownership of the underlying asset to the lessee, it is classified as a finance lease. All other leases are classified as operating leases.

Under operating leases, lease payments net of any lease incentives are recognized as income on a straight-line basis over the lease term. Initial direct costs incurred in obtaining an operating lease are added to the carrying amount of the leased asset and recognized as expenses on a straight-line basis over the lease term.

(XIV) Borrowing Costs

Borrowing costs directly attributable to the acquisition, construction, or production of qualifying assets are capitalized as part of the cost of those assets

until substantially all the activities necessary to prepare the asset for its intended use or sale are complete.

For specific borrowings, investment income earned on the temporary investment of those borrowings before expenditure on the qualifying asset is incurred is deducted from the borrowing costs eligible for capitalization.

All other borrowing costs are recognized in profit or loss in the period in which they are incurred.

(XV) Employee Benefits

1. Short-Term Employee Benefits

Liabilities for short-term employee benefits are measured at the undiscounted amount expected to be paid in exchange for employee service.

2. Post-Employment Benefits

Pension contributions under defined contribution plans are recognized as expenses in the period in which the employees provide the related services.

The defined benefit cost (including service cost, net interest, and remeasurement) of defined benefit plans is determined using the projected unit credit method. Service cost (including current service cost) and net interest on the net defined benefit liability (asset) are recognized as employee benefit expenses in the period in which they occur. Remeasurements (including actuarial gains and losses and the return on plan assets, excluding interest) are recognized in other comprehensive income and included in retained earnings in the period in which they arise. These amounts are not reclassified to profit or loss in subsequent periods.

The net defined benefit liability (asset) is the deficit (surplus) of defined benefit plan obligations over plan assets. The net defined benefit asset recognized cannot exceed the present value of any economic benefits available in the form of refunds from the plan or reductions in future contributions to the plan.

(XVI) Income Tax

Income tax expense comprises current income tax and deferred income tax.

1. Current Income Tax

The Company determines the current period’s taxable income (loss) in accordance with the laws and regulations enacted in each jurisdiction for income tax filings, and calculates the income tax payable (recoverable) accordingly.

Additional income tax on unappropriated earnings, calculated in accordance with the Income Tax Act of the Republic of China, is recognized in the year the shareholders’ meeting resolves the earnings appropriation.

Adjustments to income tax payable for prior years are recognized in current income tax.

2. Deferred Income Tax

Deferred income tax is calculated based on temporary differences between the carrying amounts of assets and liabilities in the financial statements and their respective tax bases used in the computation of taxable income.

Deferred income tax liabilities are generally recognized for all taxable temporary differences. Deferred income tax assets are recognized to the extent that it is probable that future taxable income will be available against which the deductible temporary differences and tax loss carryforwards can be utilized.

The carrying amount of deferred income tax assets is reviewed at each balance sheet date and is reduced to the extent that it is no longer probable that sufficient taxable income will be available to allow all or part of the assets to be recovered. Deferred income tax assets previously not recognized are also reviewed at each balance sheet date and are recognized to the extent that it has become probable that future taxable income will allow the deferred income tax assets to be recovered.

Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based on tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date. The measurement of deferred income tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company

expects, at the balance sheet date, to recover or settle the carrying amount of its assets and liabilities.

3. Current and Deferred Income Tax

Current and deferred income tax are recognized in profit or loss, except for income tax related to items recognized in other comprehensive income or directly in equity, which are recognized in other comprehensive income or directly in equity, respectively.

V. Major Sources of Estimation Uncertainty in Critical Accounting Judgments, Estimates, and

Assumptions

When applying accounting policies, and where relevant information is not readily available from other sources, management must make judgments, estimates, and assumptions based on historical experience and other relevant factors. Actual results may differ from these estimates.

In developing significant accounting estimates, the Company considers potential impacts on key areas such as projected cash flows, growth rates, discount rates, and profitability. Management continuously reviews these estimates and the underlying assumptions.

Key Sources of Estimation Uncertainty

Inventory Impairment

Net realizable value of inventories is estimated as the selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale. These estimates are assessed based on current market conditions and historical sales experience of similar products. Changes in market conditions may significantly affect these estimates.

VI. Cash

conditions may significantly affect these sh	estimates.
Cash on hand and petty cash Checks and demand deposits	December 31, 2024 $ 1,378 99,603 $ 100,981	December 31, 2023
			$ 1,408 203,679 $ 205,087

VII. Financial Instruments at Fair Value Through Profit or Loss—Current

December 31, 2024 December 31, 2023 Financial asset Mandatorily measured at fair value through profit or loss Non-derivative financial assets TWSE/TPEx listed stocks $ 82,520 $ 278,225

VIII. Financial Assets at Fair Value Through Other Comprehensive Income – Non-current –

December 31, 2023

December 31, 2023
Investments in Equity Instruments Domestic Investments Listed (TWSE/TPEx) Shares – Common Stock Unlisted Shares – Common Stock		Amount
		$ 51,574 - $ 51,574

The Company invests in the common shares of the above-mentioned companies for mid- to long-term strategic purposes and expects to generate profits through long-term holdings. Management believes that recognizing short-term fair value fluctuations of these investments in profit or loss would not align with the Company’s long-term investment strategy. Therefore, the Company has designated these investments as measured at fair value through other comprehensive income.

IX. Accounts Receivable – December 31, 2024

measured at fair value through other comprehensive income. ccounts Receivable–December 31, 2024
Accounts Receivable Total Book Value Measured at Amortized Cost Less: Allowance for loss		Amount
		$ 18,400 - $ 18,400

The Company’s average credit period for sales of goods is within 90 days, and the receivables are non-interest-bearing. The Company evaluates its major customers using publicly available financial information and historical transaction records, and selects those with higher credit ratings as trading counterparties. The Company continuously monitors credit risk exposure and counterparties’ credit ratings, and reviews credit limits annually to manage credit risk.

The Company recognizes a loss allowance for receivables based on lifetime expected credit losses. Lifetime expected credit losses are calculated using a provision matrix, which takes into account the customers’ past default records, current financial conditions, and the economic conditions of the industry, along with GDP forecasts and industry outlook. Based on the Company’s historical experience, the loss patterns across different customer groups do not significantly differ. Therefore, the provision matrix does not further classify customer groups but determines expected credit loss rates based solely on the number of days past due.

As of December 31, 2024, all accounts receivable were not past due; accordingly, no loss allowance was recognized.

X. Inventories

no loss allowance was recognized. entories
Merchandise Raw materials Supplies Work in progress Finished good	December 31, 2024 $ 129,807 247,568 15,125 190,956 63,164 $ 646,620	December 31, 2023
			$ 68,995 94,078 13,508 186,772 202,880 $ 566,233

The cost of goods sold related to inventories for 2024 and 2023 amounted to NT$1,263,276 thousand and NT$894,525 thousand, respectively.

The cost of goods sold for 2024 and 2023 included inventory valuation losses of NT$4,047 thousand and reversal gains of NT$249 thousand, respectively. The reversal gain in 2023 resulted from the disposal of inventory items for which previous valuation losses had been recognized when their net realizable value had fallen below cost.

XI. Property, Plant and Equipment

December 31, 2024 December 31, 2023 For Own Use $ 358,030 $ 368,473

For movements in property, plant and equipment, please refer to Table 4.

Depreciation expenses are calculated on a straight-line basis over the following useful lives:

useful lives:
Buildings
Main plant structure	35 years
Offices and other buildings	2-35 years
Machinery and equipment	2-20 years
Transport equipment	5-10 years
Office equipment	5-8 years
Other equipment	2-15 years

The Company entered into a rooftop lease agreement with another company in July 2017. The lease period extends from the commercial operation date of the solar power system to the end of 20 years. The rent is based on a floating rate calculated as a fixed percentage of actual electricity sales revenue generated by the solar power system, and is collected monthly. The Company earned rental income of NT$1,292 thousand and NT$1,465 thousand for the years 2024 and 2023, respectively, from the aforementioned lease.

On February 6, 2023, the Company’s Board of Directors approved a resolution to activate land assets and improve the Company’s financial structure. It was resolved to dispose of land and buildings located at Lot No. 491, Pitou Section, Madou District, Tainan City. The Chairman was authorized to use the real estate appraisal report as the reference for setting the selling price, to sign sale contracts and other related documents on behalf of the Company, and to handle follow-up matters. Accordingly, the carrying amount of NT$4,104 thousand for the aforementioned property was reclassified as investment property.

For information on property, plant and equipment pledged as collateral, please refer to Note 25.

XII. Investment Property

refer to Note 25. estment Property
Land Buildings Cost Balance as of January 1, 2023 Reclassifications Disposals Balance as of December 31, 2023 Accumulated Depreciation Balance as of January 1, 2023 Depreciation Expense Balance as of December 31, 2023 Accumulated impairment Balance as of January 1 and December 31, 2023	December 31, 2024 December 31, 2023 $ 85,472 $ 85,472 9,577 11,321 $ 95,049 $ 96,793 Land Buildings Total $ 143,483 $ 87,203 $ 230,686 4,104 - 4,104 ( 24,068) - ( 24,068) $ 123,519 $ 87,203 $ 210,722 $ - $ 39,770 $ 39,770 - 1,744 1,744 $ - $ 41,514 $ 41,514 $ 38,047 $ 34,368 $ 72,415		December 31, 2023
		$ 85,472 9,577 $ 95,049 Land $ 143,483 4,104 24,068) $ 123,519 $ - - $ - $ 38,047		$		85,472 11,321 96,793 Total
				$

	(				(	$ 230,686 4,104 24,068) $ 210,722 $ 39,770 1,744 $ 41,514 $ 72,415

Net Book Value as of December 31, 2023 Cost Balance as of January 1 and December 31, 2024 Accumulated Depreciation Balance as of January 1, 2024 Depreciation Expense Balance as of December 31, 2024 Accumulated impairment Balance as of January 1 and December 31, 2024 Net Book Value as of December 31, 2024	$ 85,472 $ 123,519 $ - - $ - $ 38,047 $ 85,472	$ 11,321 $ 87,203 $ 41,514 1,744 $ 43,258 $ 34,368 $ 9,577	$ 96,793 $ 210,722 $ 41,514 1,744 $ 43,258 $ 72,415 $ 95,049

Investment property is depreciated on a straight-line basis over the following useful life:

Main building structure 16.5-50 years

The fair value of the Company’s investment property is assessed by management based on market evidence of transaction prices of similar properties. Fair value is as follows:

December 31, 2024 December 31, 2023 Fair value $ 788,802 $ 800,823

On January 18, 2023, the Company entered into a land lease agreement with a lessee to lease land subdivided from Land Lot No. 5, Magong Section, Madou District, Tainan City, at a monthly rental of NT$500 thousand. The lease term was from January 18 to March 17, 2023. If the lessee fails to complete the optoelectronics industry application procedures within the above lease term, the lessee must not claim any compensation from the Company for the damage caused by the termination of the above land lease. If the lessee intends to purchase the leased land within the lease term, it may sign a land sale contract with the Company. Subsequently, on February 6, 2023, the Board of Directors of the Company approved the sale of the aforementioned land for NT$419,176 thousand. The Company then signed a real estate sale and purchase agreement on February 10, 2023, with a total transaction price of NT$419,176 thousand and appointed a bank to serve as trustee for the transaction funds. In April 2023, the

buyer remitted the contract deposit of NT$41,918 thousand into the aforementioned real estate transaction trust account at the designated bank. In May 2023, the Company completed the transfer of land ownership, received the remaining transaction payment of NT$377,258 thousand, and recognized a gain on disposal of investment property of NT$394,777 thousand and an income tax expense—land value increment tax of NT$15,099 thousand.

On March 28, 2023, the Company entered into a real estate and equipment sale and purchase agreement with the buyer, selling Land Lot No. 491, Pitou Section, Madou District, Tainan City, along with the electrical room, booster station, and UHV pipelines located within the unregistered structure on the land, including in-plant equipment, external conduit assets, and associated usage rights, for a total consideration of NT$197,347 thousand. However, equipment delivery was contingent upon completion of installation of specific electrical equipment at the Company’s in-plant booster station and confirmation that electricity usage would not be affected. The above transaction funds were entrusted to a bank for price trust. In May 2023, the buyer remitted the contract deposit of NT$34,735 thousand (comprising NT$9,735 thousand for land and NT$25,000 thousand for equipment) into the aforementioned real estate transaction trust account at the designated bank. In February 2025, due to business needs, the buyer negotiated and signed a supplementary agreement with the Company to complete the transfer of land ownership in advance and remitted the remaining land sales proceeds of NT$87,612 thousand into the aforementioned trust account at the designated bank. The land ownership transfer was completed accordingly.

In the fourth quarter of 2004, the Company adopted net fair value as the recoverable amount for assessing its investment property—land and buildings. After appraisal, the estimated recoverable amount was lower than the carrying amount, and an impairment loss of NT$24,997 thousand was recognized for the difference. Subsequently, in the second quarter of 2014, the aforementioned investment property—land and buildings was re-evaluated based on actual transaction registration data obtained from the officially announced market price. The estimated recoverable amount of the land was higher than the carrying amount, and a reversal of NT$5,997 thousand was recognized. Later, in November 2017, as a result of the merger between the Company and its subsidiary, an accumulated impairment loss of NT$53,415 thousand related to investment property was transferred into the Company.

XIII. Notes Payable and Accounts Payable

The Company’s notes payable and accounts payable are all generated from operating activities.

The Company has established a financial risk management policy to ensure that all payables are settled within the pre-agreed credit period.

XIV. Other Liabilities

XV.	Current Other payables Wages and salaries payable Payables for equipment Utility fees payable Repairs and maintenance expense payable Payables for taxes Others Provisions–Current Onerous Contracts Changes are as follows: Balance as of January 1, 2023 Additions during the year Balance as of December 31, 2023 Balance as of January 1, 2024 Exchange differences Amounts written off during the year Balance as of December 31, 2024	December 31, 2024 $ 8,009 7,450 8,362 3,448 633 6,066 $ 33,968 December 31, 2024 $ -	December 31, 2023	December 31, 2023
			$ 6,717 6,591 3,431 1,400 643 4,669 $ 23,451 December 31, 2023
				$ 59,959 Amount
			(	$ - 59,959 $ 59,959 $ 59,959 2,428 62,387) $ -

The provision for onerous contracts arises from a loss-making purchase contract in the fourth quarter of 2023 due to a decline in raw material prices. The loss is measured as the difference between the unavoidable costs of fulfilling the contract and the economic benefits expected to be derived from the contract. The Company estimates the provision based on the compensation or penalties that would be incurred for failing to perform the contract, which management considers the best estimate of the expenditure

required to settle the obligation. This estimate may change due to fluctuations in spot market prices.

In March 2024, the Company received a notice from the supplier of the aforementioned onerous contract informing the Company of the contract’s termination. However, the Company continued negotiations with the supplier, and in December 2024, both parties confirmed that a consensus could not be reached. Accordingly, the liability provision and related prepayments were written off.

XVI. Post-Employment Benefit Plans

(I) Defined Contribution Plans

The Company's pension plan under the Labor Pension Act is a government-administered defined contribution plan. In accordance with the Act, the Company contributes 6% of each employee’s monthly wages to the individual pension account at the Bureau of Labor Insurance.

(II) Defined Benefit Plan

The pension scheme adopted by the Company in accordance with the Labor Standards Act of the Republic of China is a government-administered defined benefit plan. Pension payments to employees are calculated based on the length of service and the average monthly salary over the six months prior to the approved date of retirement. The Company contributes an amount equal to 2% of the employees’ total monthly wages to the pension fund. Contributions are deposited into a dedicated account with the Bank of Taiwan in the name of the Labor Pension Reserve Supervisory Committee. Before year-end, if the estimated balance in the dedicated account is insufficient to cover payments to employees expected to meet retirement criteria in the following year, the Company will make a one-time contribution of the shortfall before the end of March of the following year. This dedicated account is managed by the Bureau of Labor Funds, Ministry of Labor. The Company has no right to influence the investment management strategy.

The amounts recognized in the balance sheet for the defined benefit plan are as follows:

are as follows:
Current value of a defined benefit obligation Fair value of planned	December 31, 2024 $ 9,815 ( 7,452)	December 31, 2023
	(	(	$ 9,386 3,423)

assets Defined benefit liability

2,363

5,963

Changes in net defined benefit liability are as follows:

January 1, 2023 Service cost Interest expense (income) Recognized in profit or loss Remeasurements Return on plan assets (excluding amounts included in net interest) Actuarial gains – changes in financial assumptions Actuarial gains – experience adjustments Recognized in other comprehensive income Employer contributions Benefit payments December 31, 2023 Interest expense (income) Recognized in profit or loss Remeasurements Return on plan assets (excluding amounts included in net interest) Actuarial losses – changes in financial assumptions Actuarial gains – experience adjustments Recognized in other comprehensive income Employer contributions December 31, 2024	Current value of a defined benefit obligation $ 9,842 138 138 $ - 198 470 668 - ( 1,262) 9,386 112 112 - ( 393 ) 710 317 - $ 9,815	Fair value of planned assets ( $ 4,372 ) ( 61) ( 61) ( $ 24 ) - - ( 24) ( 228) 1,262 ( 3,423 ) ( 41) ( 41) ( 362 ) - - ( 362) ( 3,626) ($ 7,452)	Net defined benefit liability (asset)	Net defined benefit liability (asset)
		( ( ( ( ( ( ( ( ( ( ( ( (	( ( ( ( ( (	$ 5,470 77 77 $ 24 ) 198 470 644 228) - 5,963 71 71 362 ) 393 ) 710 45) 3,626) $ 2,363

The amounts recognized in profit or loss for the defined benefit plan, presented by function, are as follows:

Operating cost Selling and marketing expenses	2024 $ 59 4	2023
		$ 64 4

==> picture [369 x 25] intentionally omitted <==

The Company is exposed to the following risks under the defined benefit pension scheme pursuant to the Labor Standards Act:

Investment risk: The Bureau of Labor Funds, Ministry of Labor, invests the labor retirement fund through both internal management and external mandates in domestic and overseas equity securities, debt instruments, and bank deposits. However, the return on the Company’s allocated plan assets is based on an amount not lower than the interest rate of a two-year time deposit with local banks.
Interest rate risk: A decline in government bond interest rates will increase the present value of the defined benefit obligation. However, the return on debt investments within the plan assets would also increase, partially offsetting the impact on the net defined benefit liability.
Salary risk: The present value of the defined benefit obligation is calculated with reference to the future salaries of plan members. Accordingly, an increase in the salaries of plan members will result in an increase in the present value of the defined benefit obligation.

The present value of the Company’s defined benefit obligation is determined by a qualified actuary. The key actuarial assumptions on the measurement date are as follows:

Discount rate Expected salary increase rate	December 31, 2024 1.60% 3.00%	December 31, 2023
		1.20% 3.00%

If any significant actuarial assumptions change within a reasonably possible range, while all other assumptions remain unchanged, the resulting increase (decrease) in the present value of the defined benefit obligation would be as follows:

be as follows:
Discount rate Increase of 0.25% Decrease of 0.25%	December 31, 2024 ($ 235) $ 243	December 31, 2023
	(	(	$ 246) $ 256

Expected salary increase rate

Increase of 0.25% Decrease of 0.25% (	$ 215 $ 210) (	$ 227 $ 221)

As actuarial assumptions may be interdependent, it is unlikely that only one assumption would change in isolation. Therefore, the above sensitivity analysis may not reflect actual changes in the defined benefit obligation.

Expected contributions within one year Weighted average duration of the defined benefit obligation	December 31, 2024 $ 251 10 years	December 31, 2023	December 31, 2023
			$ 233 11 years

XVII. Equity

(I) Share Capital

Ordinary shares

re Capital Ordinary shares
Authorized shares (in thousands) Authorized capital Issued and fully paid shares (in thousands) Issued capital	December 31, 2024 500,000 $ 5,000,000 172,660 $ 1,726,605	December 31, 2023
			500,000 $ 5,000,000 281,167 $ 2,811,673

Each issued common share has a par value of NT$10 and entitles the holder to one vote and the right to receive dividends.

On November 6, 2024, the Company’s extraordinary shareholders’ meeting resolved to offset accumulated deficits by reducing capital in the amount of NT$1,085,068 thousand, by canceling 108,507 thousand issued common shares with a par value of NTD 10 per share, representing a capital reduction ratio of 38.59152208%. After the capital reduction, the paid-in capital amounted to NT$1,726,605 thousand, with 172,660 thousand shares issued. The above capital reduction was approved by the Securities and Futures Bureau, Financial Supervisory Commission, on December 3, 2024. The capital reduction record date was set for December 5, 2024, and the registration of the change was completed on December 26, 2024.

(II) Retained Earnings and Dividend Policy

Pursuant to the Company’s Articles of Incorporation, if a surplus is generated in the annual final accounts, it shall first be used to pay taxes and

offset prior years’ losses, followed by an appropriation of 10% as legal reserve and additional special reserve appropriated or reversed in accordance with relevant laws and regulations. Any remaining surplus shall be combined with unappropriated earnings from prior years, and the Board of Directors shall propose an earnings distribution plan, which shall be distributed upon resolution by the shareholders’ meeting.

For the remuneration distribution policy for employees and directors stipulated in the Company’s Articles of Incorporation, please refer to Note 19(8), "Employees’ Compensation and Directors’ Remuneration."

The Company shall formulate an earnings distribution proposal based on the distributable surplus stated above, taking into account the economic environment in which its business operates, future capital requirements, long-term financial planning, and shareholders’ demand for cash inflows. The proposal shall be submitted to the shareholders’ meeting for resolution. Cash dividends to shareholders shall not be less than 10% of the total dividends distributed. However, if the cash dividend per share is less than NT$0.5, such dividends may be distributed in the form of stock dividends instead.

The Company held its Annual General Meetings on June 14, 2024, and June 15, 2023, respectively, and approved the deficit compensation proposals for fiscal years 2023 and 2022.

In March 2025, the Board of Directors proposed a deficit compensation plan for fiscal year 2024.

The proposal for deficit compensation for fiscal year 2024 is pending approval at the shareholders’ meeting expected to be held in June 2025.

(III) Other Equity Items

Unrealized gains and losses on financial assets measured at fair value through other comprehensive income (FVOCI)

Beginning retained earnings Recognized during the period Unrealized gains and losses Equity instrument Accumulated gains or		2024 $ 22,121 ) 5,984 11,428		2023
	(		(	$ 31,980 ) 9,859 -

losses on the disposal of equity instruments transferred to retained earnings Ending balance ( $ 4,709 ) ( $ 22,121 )

XVIII. Revenue

evenue
Revenue from contracts with customers Sales of goods Others		2024 $ 1,041,306 17,020 $ 1,058,326		2023
				$ 726,148 12,543 $ 738,691

(I) Description of Customer Contracts

Revenue from sales of goods and rendering of services

Revenue from the sale of goods and the provision of services is recognized when the significant risks and rewards of ownership of the goods have been transferred to the buyer and the related services have been completed.

(II) Contract Balances

completed. ntract Balances
Accounts receivable (refer to Note 9)	December 31, 2024 $ 18,400	December 31, 2023 $ -		January 1, 2023
				$ -

(III) Breakdown of Revenue from Customer Contracts

Steel coils Processing		2024 $ 1,041,306 17,020 $ 1,058,326		2023
				$ 726,148 12,543 $ 738,691

XIX. Profit (Loss) Before Tax

(I) Other Income and Expenses

) Before Tax er Income and Expenses
Losses on disposals of property, plant and equipment		2024 $ 175)		2023
	(		(	$ 5)

(II) Interest Income

(II) Interest Income
Interest on bank deposits (III) Other Income Rent income Dividend revenue Others (IV) Other Gains and Losses Gain (loss) on financial assets Financial assets measured at FVTPL Gain on disposal of investment property Net foreign exchange gain (loss) Loss on onerous purchase contracts (refer to Note 15) Depreciation Expense Other losses (V) Finance Costs – 2024 Interest on bank borrowings (VI) Depreciation and Amortization Depreciation expenses by function Operating cost Operating expenses Other gains or losses Amortization expenses by function Operating cost Operating expenses		2024 $ 1,433 2024 $ 1,292 7,147 3,360 $ 11,799 2024 $ 1,502 - 2,748 ) - 1,744 ) 125) $ 3,115) 2024 $ 35,730 1,340 1,744 $ 38,814 $ 14 6 $ 20		2023
				$ 3,342 2023
				$ 2,418 10,348 862 $ 13,628 2023
	( ( ( (		( ( (	$ 69,864 394,777 10,770 59,959 ) 1,744 ) 9) $ 413,699 Amount
				$ 246 2023
				$ 34,241 1,421 1,744 $ 37,406 $ 14 37 $ 51

(VII) Employee Benefit Expenses

Employee Benefit Expenses
Short-term employee benefits Salaries Labor and health insurance Remuneration to directors Others Post-employment benefits Defined contribution plans Defined benefit plans (refer to Note 16) By function Operating cost Operating expenses		2024 $ 42,027 4,801 1,183 2,505 50,516 2,219 71 2,290 $ 52,806 $ 32,532 20,274 $ 52,806		2023
				$ 30,758 3,657 1,257 1,465 37,137 1,688 77 1,765 $ 38,902 $ 25,123 13,779 $ 38,902

(VIII) Employees’ Compensation and Directors’ Remuneration

According to the Company’s Articles of Incorporation, 2%–3% of pre-tax profit before deducting employees' compensation and directors' remuneration shall be appropriated as employees' compensation, while up to 1% shall be appropriated as directors' remuneration. As the Company incurred accumulated losses in both 2024 and 2023, the Board of Directors resolved on March 14, 2025, and March 14, 2024, respectively, not to accrue employees’ compensation and directors’ remuneration.

If any changes in amounts occur after the issuance of the annual consolidated financial statements, such changes shall be treated as changes in accounting estimates and shall be adjusted in the following year.

There were no differences between the actual amounts distributed as employees’ compensation and directors’ remuneration and the amounts recognized in the financial statements for the years ended December 31, 2023, and 2022.

Information on the employees’ compensation and directors’ remuneration

approved by the Board of Directors can be found on the Market Observation Post System (MOPS) of the Taiwan Stock Exchange.

XX. Income Tax

(I) Income Tax Recognized in Profit or Loss

The components of income tax expense are as follows:

Current income tax Land value increment tax Deferred income tax Originating during the current year		2024 $ - 1,801 $ 1,801		2023
				$ 15,099 100 $ 15,199

The reconciliation between accounting profit and income tax expense is as follows:

follows:
Profit (loss) before tax Income tax calculated at the statutory tax rate on profit (loss) before tax Income not taxable and expenses not deductible for tax purposes Tax-exempt income Land value increment tax Unrecognized temporary differences and loss carryforwards		2024 $ 244,153) $ 48,831 ) 46 1,188 ) - 51,774 $ 1,801		2023
	( ( (		(	$ 243,417 $ 48,683 96,880 ) - 15,099 48,297 $ 15,199

(II) Income Tax Recognized in Other Comprehensive Income

Deferred income tax Originating during the current year Remeasurements of defined benefit plans		2024 $ 9)		2023
	(			$ 129

(III) Deferred Income Tax Assets and Liabilities

Movements in deferred income tax assets and liabilities are as follows:

2024

Deferred tax assets Temporary differences Defined benefit pension plans Deferred tax liabilities Temporary differences Others 2023 Deferred taxassets Temporary differences Defined benefit pension plans Deferred tax liabilities Temporary differences Unrealized exchange gains Others		Opening balance $ 2,399 $ 116 Opening balance $ 2,270 $ 16 - $ 16	Recognized in profit or loss ($ 1,917) ($ 116) Recognized in profit or loss $ - ( $ 16 ) 116 $ 100	Recognized in other comprehensi ve income ($ 9) $ - Recognized in other comprehensi veincome $ 129 $ - - $ -		Closing balance
						$ 473 $ - Closing balance
						$ 2,399 $ - 116 $ 116

(IV) Information on Unused Loss Carryforwards

As of December 31, 2024, information on unused loss carryforwards is as follows:

	Unused balance $ 86,078 332,570 21,430 44,293 193,592 317,827 80,426 170,715 306,985 $ 1,553,916	Last year for credit
		113 114 115 117 118 119 121 122 123

(V) Status of Income Tax Assessments

The Company’s profit-seeking enterprise income tax returns up to fiscal year 2022 have been assessed by the tax authority.

XXI. Earnings (Loss) Per Share

In calculating earnings per share, the effect of the capital reduction to offset accumulated deficits has been retrospectively adjusted. The base date for the capital reduction to offset deficits was December 5, 2024. As a result of the retrospective adjustment, the changes in basic and diluted earnings per share for 2023 are as follows:

Unit: NT$ per share

Basic earnings per share Diluted earnings per share		Before retrospective adjustment $ 0.81 $ 0.81	After retrospective adjustment	After retrospective adjustment
				$ 1.32 $ 1.32

The earnings (net loss) and weighted average number of ordinary shares used to calculate earnings (net loss) per share are as follows:

Net income (loss) for the year

Net income (loss) for the year
Net income (loss) for the year No. of shares Weighted average number of ordinary shares used to calculate basic and diluted earnings (loss) per share		2024 2023 $ 245,954) $ 228,218 Unit: thousand shares 2024 2023 172,660 172,660
	(

If the Company may elect to distribute employee compensation in the form of shares or cash, it is assumed in calculating diluted earnings (loss) per share that employee compensation will be settled in shares. The potential ordinary shares with dilutive effect are included in the calculation of the weighted average number of outstanding shares to calculate diluted earnings (loss) per share. Before the number of shares to be distributed for employee compensation is resolved in the following year, the potential dilutive effect of such shares continues to be considered in the calculation of diluted earnings (loss) per share.

XXII. Cash Flow Information

The Company engaged in the following investing activities involving partial cash transactions in 2024 and 2023:

Acquisition of property, plant and equipment

transactions in 2024 and 2023: Acquisition of property, plant and equipment
2024 2023 Additions to property, plant and equipment $ 15,786 $ 7,345 Plus: Other payables at the beginning of the period 6,591 6,002 Less Other payables at the end of the period ( 7,450) ( 6,591) Cash paid for acquisitions of property, plant and equipment $ 14,927 $ 6,756 Financial Instruments (I) Fair value information – Financial instruments not measured at fair value The carrying amounts of the Company’s financial instruments that are not measured at fair value, including cash, accounts receivable, other receivables, refundable deposits, accounts payable, and other payables, approximate their fair values. (II) Fair value information – Financial instruments measured at fair value on a recurring basis Fair value hierarchy December 31, 2024 Level 1 Level 2 Level 3 Total Financial assets measured at FVTPL Investments in Equity Instruments TWSE/TPEx listed stocks $ 82,520 $ - $ - $ 82,520 December 31, 2023 Level 1 Level 2 Level 3 Total Financial assets measured at FVTPL Investments in Equity Instruments TWSE/TPEx listed stocks $ 278,225 $ - $ - $ 278,225 Financial assets measured at	2023
		$ 82,520 Total
		$ 278,225

XXIII. Financial Instruments

The carrying amounts of the Company’s financial instruments that are not measured at fair value, including cash, accounts receivable, other receivables, refundable deposits, accounts payable, and other payables, approximate their fair values.

(II) Fair value information – Financial instruments measured at fair value on a recurring basis

fair value through other comprehensive income (FVTOCI) Investments in Equity Instruments TWSE/TPEx listed $ 51,574 $ - $ - $ 51,574 stocks

There were no transfers between Level 1 and Level 2 fair value measurements in 2024 and 2023.

There were no transfers into or out of Level 3 fair value measurements in 2024 and 2023.

(III) Financial Instruments

2024 and 2023. inancial Instruments
Financial asset Financial assets measured at fair value through profit or loss (FVTPL) Financial assets measured at fair value through profit or loss (FVTPL) Financial assets measured at amortized cost (Note 1) Financial assets measured at fair value through other comprehensive income (FVTOCI) Investments in Equity Instruments Financial liability Measured at amortized cost (Note 2)	December 31, 2024 $ 82,520 120,231 - 82,662	December 31, 2023
		$ 278,225 205,089 51,574 34,186

Note 1: The balances include financial assets measured at amortized cost, comprising cash, accounts receivable, other receivables, and refundable deposits.

Note 2: The balances also include financial liabilities measured at amortized cost, comprising accounts payable and other payables.

(IV) Purpose and policy of financial risk management

The Company’s principal financial instruments include investments in

equity instruments, accounts receivable, and accounts payable. The Company’s finance department provides services to operating units, coordinates operations in domestic and foreign financial markets, and monitors and manages the financial risks related to the Company’s business activities by analyzing internal reports on the extent and scope of such risks. These risks include market risk (including exchange rate risk, interest rate risk, and other price risk), credit risk, and liquidity risk.

The Company’s significant financial activities are reviewed by the Board of Directors in accordance with applicable laws and the Company’s internal control system. Internal auditors continue to monitor compliance with policies and exposure limits. The Company does not engage in speculative trading of financial instruments (including derivatives).

1. Market Risk

The Company’s operations expose it to major financial risks, including changes in foreign currency exchange rates (see (1) below), changes in interest rates (see (2) below), and other price risks (see (3) below).

(1) Exchange rate risk

The Company is exposed to exchange rate risk arising from sales and purchases denominated in foreign currencies.

Moreover, the Company has assessed that fluctuations in exchange rates would not have a material impact on pre-tax profit or loss. For the carrying amounts of monetary assets and liabilities denominated in foreign currencies as of the balance sheet date, please refer to Note 27.

(2) Interest rate risk

The Company is exposed to interest rate risk primarily due to its borrowings at fixed and floating interest rates. The Company manages this risk by maintaining an appropriate mix of fixed and floating interest rate borrowings.

The carrying amounts of financial assets and liabilities exposed to interest rate risk at the balance sheet date are as follows:

December 31, 2024 December 31, 2023

Subject to cash

==> picture [313 x 39] intentionally omitted <==

Sensitivity analysis

For floating rate financial assets, the analysis assumes that the amount outstanding at the balance sheet date remains unchanged throughout the year. The rate of change used by the Company when reporting interest rates internally to key management is an increase or decrease of 0.5% in the interest rate, which also represents management's assessment of the reasonably possible range of interest rate changes.

If interest rates had increased/decreased by 0.5%, and all other variables remained constant, the Company’s pre-tax profit or loss for 2024 and 2023 would have increased/decreased by NT$498 thousand and NT$1,016 thousand, respectively. This is primarily due to cash flow interest rate risk arising from floating rate net assets.

(3) Other price risk

The Company is exposed to equity price risk due to its investments in stocks listed on the TWSE/TPEx. Sensitivity analysis

If equity prices had increased/decreased by 5%, the pre-tax profit or loss for 2024 and 2023 would have increased/decreased by NT$4,126 thousand and NT$13,911 thousand, respectively, due to changes in the fair value of financial assets measured at fair value through profit or loss. Other comprehensive income before tax for 2024 and 2023 would have increased/decreased by NT$0 thousand and NT$2,579 thousand, respectively, due to changes in the fair value of financial assets measured at fair value through other comprehensive income.

2. Credit risk

Credit risk refers to the risk that the Company may incur financial losses if a counterparty fails to fulfill its contractual obligations. As of the balance sheet date, the Company’s maximum exposure to credit risk,

defined as the maximum potential financial loss arising from counterparties failing to fulfill their obligations or from the Company providing financial guarantees (without taking into account any collateral, other credit enhancements, or the revocability of the exposure), primarily derives from:

(1) The carrying amounts of financial assets recognized on the balance sheet.
(2) The maximum amount the Company may be required to pay under financial guarantees, regardless of the likelihood of such payment.

The Company’s policy is to conduct transactions only with counterparties that have good credit standing and to continue monitoring their credit ratings. The Company also evaluates key customers by referring to publicly available financial information and historical transaction records.

All of the Company’s trading counterparties are financial institutions or corporate entities with sound credit ratings; therefore, no significant credit risk is anticipated.

Liquidity risk

The Company manages and maintains sufficient cash and cash equivalents to meet operational requirements and mitigate the impact of cash flow fluctuations. Management monitors the usage of banking facilities to ensure compliance with loan covenants.

Bank borrowings are an important source of liquidity for the Company. For details on the Company’s unused credit facilities, please refer to (2) below.

(1) Liquidity and interest rate risk of non-derivative financial liabilities

The following table presents an aggregated analysis of the Company’s financial liabilities with agreed repayment periods, based on their maturity dates and the undiscounted contractual cash flows:

flows:
December 31, 2024 Non-interest-bearin g liabilities		Within 1 year
		$ 82,662

December 31, 2023 Non-interest-bearin $ 34,186 g liabilities

(2) Credit facilities

December 31, 2024 December 31, 2023

Letter of credit and bank loan facilities: - Utilized amount $ - $ 300,557 - Unutilized amount 1,320,000 599,443 $ 1,320,000 $ 900,000

XXIV. Related Party Transactions

The transactions between the Company and its related parties are as follows:

(I) Names of Related Parties and Their Relationships

Related Party Name Relationship to the Company Shuo-Tang Yeh Key management personnel of the Company before June 2024 (Note 1) Tsai-Yun Yeh Key management personnel of the Company before June 2024 (Note 2) Quintain Steel Co., LTD (Quintain Substantive related party (a corporate Steel) director of the Company is also a corporate director of this company) Uni G Metal Co., Ltd. (Uni G Substantive related party Metal) Chateau International Substantive related party (a subsidiary Development Company of the Company’s substantive related Limited (Chateau International) party)

Note 1: Following the re-election of directors at the shareholders’ meeting

on June 14, 2024, the Chairperson of the Company stepped down; therefore, related party transaction information is disclosed only through June 14, 2024.

Note 2: From December 21, 2023 to April 16, 2024, this individual served as General Manager of the Company and stepped down as the Company's corporate director representative on July 4, 2024.

(II) Operating Revenue

Line Item Related Party Category / Name 2024 2023 Sales Revenue Substantive related

party UNI G METAL $ 2,157 $ 8,236 CO.

The prices and payment terms of the Company’s sales to related parties, aside from discounts for defective goods granted on a case-by-case basis, do not differ significantly from those offered to unrelated third parties.

(III) Purchases – 2024

Related Party Category / N a m e Amount Substantive related party UNI G METAL CO. $ 415,497

The payment terms and prices for purchases from related parties do not differ significantly from those applicable to unrelated third parties. Payment periods are determined on a case-by-case basis according to transaction terms, but generally, full payment is made prior to shipment or via a full-value letter of credit. Therefore, there is no material difference from transactions with other vendors.

(IV) Advance Payments (recorded under “Advance Payments”) – December 31, 2024

Related Party Category / Name Substantive related party UNI G METAL CO.		Amount
		$ 59,160

(V) Acquisition of Property, Plant and Equipment – 2024

cquisition of Property, Plant and Equipment – 2024
Related Party Category / Name Substantive related party Quintain Steel Co.	Acquisition Price
		$ 1,470

(VI) Endorsements and Guarantees

Endorsements and Guarantees Obtained

Related Party Name December 31, 2023 Key management personnel Amount of guarantee $ 900,000

As of June 14, 2024, a short-term loan credit line for import development purposes was jointly guaranteed by key management personnel of the Company. The guaranteed amount was NT$900,000 thousand.

(VII) Other Related Party Transactions

The Company purchased accommodation vouchers, meal vouchers, and gifts from a substantive related party for use in meetings and hospitality. The recognized and paid amount in 2024 was NT$79 thousand, recorded under administrative expenses.

(VIII) Remuneration to Key Management Personnel

Short-term employee benefits		2024 $ 3,519		2023
				$ 1,257

Remuneration to directors and other key management personnel is determined by the Remuneration Committee based on individual performance and prevailing market trends.

XXV. Pledged Assets

The following assets were provided as collateral for short-term credit facilities and the issuance of letters of credit for material purchases:

December 31, 2024 December 31, 2023 Property, plant and equipment $ 144,672 $ 155,144

XXVI. Significant Contingencies and Unrecognized Contractual Commitments

Except as otherwise disclosed in the notes, the Company’s significant commitments and contingencies as of the balance sheet date are as follows:

Significant Commitments

(I) As of December 31, 2024 and 2023, the Company had unused letters of credit totaling NT$44,962 thousand and US$9,765 thousand, respectively, issued for the purchase of raw materials.

(II) The Company’s unrecognized contractual commitments are as follows:

December 31, 2024 December 31, 2023 Acquisition of property, plant and equipment $ 42,695 $ 24,573

XXVII. Information on Foreign Currency Assets and Liabilities with Significant Impact

The following information is presented in foreign currencies other than the Company’s functional currency. The disclosed exchange rates refer to the rates used to translate these foreign currencies into the functional currency. Significant foreign currency-denominated assets and liabilities are as follows:

Units: Foreign Currency and NT$ Thousand

December 31, 2024

December 31, 2024
Foreign Currency Assets Monetary Items USD Foreign Currency Liabilities Monetary Items USD December 31, 2023 Foreign Currency Assets Monetary Items USD Foreign Currency Liabilities Monetary Items USD	Foreign currency $ 727 937 Foreign currency $ 186 78	Exchange rate 32.74 32.84 Exchange rate 30.63 30.78	Carrying amount
			$ 23,814 30,756 Carrying amount
			$ 5,687 2,401

Foreign exchange gain (loss) with significant impact (realized and unrealized):

Foreign currency USD	2024	Net exchange gain (loss) ($ 2,748)	2023
	Exchange rate		Exchange rate 31.16(USD:NTD)	Net exchange gain (loss)
	32.11(USD:NTD)	(			$ 10,770

XXVIII. Additional Disclosures

(I) Information about Significant Transactions
Lending of funds to others: None.
Endorsements/guarantees provided to others: None.

Holdings of marketable securities at the end of the period (excluding investments in subsidiaries, affiliates, and joint venture equity). (Table 1)
Marketable securities acquired or disposed of at costs or prices at least NT$300 million or 20% of the paid-in capital: None.
Acquisition of individual real estate at costs of at least NT$300 million or 20% of the paid-in capital: None.
Disposal of individual real estate at costs of at least NT$300 million or 20% of the paid-in capital: None.
Purchases or sales with related parties for at least NT$100 million or 20% of the paid-in capital: (Table 2).
Receivables from related parties for at least NT$100 million or 20% of the paid-in capital: None.
Derivative transactions: None.
(II) Information about Investees: None.
(III) Information on Investments in Mainland China: None.
(IV) Information on Major Shareholders: Names of shareholders with a shareholding ratio of 5% or more, number of shares held, and percentage. (Table 3)

XXIX. Segment Information

(I) Segment Income and Operating Results, Assets, and Liabilities

The Company’s operating decision-maker uses the Company’s financial information to allocate resources and evaluate segment performance. Therefore, the Company reports as a single operating segment. The segment information provided to the operating decision-maker is based on the same measurement basis as the financial statements. The segment revenue, operating results, and asset amounts for the years ended 2024 and 2023 can be referenced in the balance sheets and statements of comprehensive income for 2024 and 2023.

(II) Information by Region: The Company does not have foreign operations.

(III) Information of Major Clients

Revenue from individual external customers accounting for 10% or more of net operating revenue is as follows:

Company A Company B Company C	2024	％ 25 24 16	2023
	Amount $ 264,112 248,589 170,181		Amount $ 228,248 279,189 72,759	％
				31 38 10

Unit: NT$ thousands

Chien Shing Stainless Steel Co., Ltd.

Table of Securities Held at the End of the Period

As of December 31, 2024

Table 1

Company name	Type of Marketable Securities	Name of Marketable Securities	Relationship with the issuer of marketable securities	Line item		End of theperiod	End of theperiod	End of theperiod			Note
					Unit / No. of Shares	Carrying amount		Percentage (%)		Fair value
The Company	TWSE Listed Shares 〞〞〞〞〞 TPEx listed shares: 〞〞 Shares of non-public companies 〞〞	Eastern Media International Corporation Taita Chemical Company, Limited Hiyes International Co., Ltd. Taiwan Business Bank Yieh Phui Enterprise Co., Ltd. U-Tech Media Corporation YFC-BonEagle Electric Co., Ltd. Shuang-Bang Industrial Corp. AVID Electronics Corp. Shin Yen Textile Co., Ltd Chien Tai Cement Co., Ltd. Taiwan Fluorescent Lamp Co., Ltd.		Financial assets measured at FVTPL - current 〞〞〞〞〞〞〞〞 Financial assets measured at fair value through other comprehensive income – non-current 〞〞	876,225 561,000 9,293 303,158 453,482 948,000 868,000 400,000 8,066 203,000 44 100,000		$ 14,545 7,686 1,868 4,502 6,870 16,353 23,610 6,680 406 $ 82,520 $ - - - $ -	0.29 0.14 0.01 - 0.02 0.61 0.59 0.49 0.06		$ 14,545 7,686 1,868 4,502 6,870 16,353 23,610 6,680 406 $ 82,520 $ - - - $ -

Chien Shing Stainless Steel Co., Ltd.

Purchases or sales with related parties for at least NT$100 million or 20% of the paid-in capital

January 1 through December 31, 2024

Table 2

Unit: Unless otherwise specified, NT$ thousand

Companies engaged in purchase (sale)	Transaction counterparty	Relations		Transaction Status	Transaction Status		The circumstances and reasons for the transaction terms and reasons for transaction terms differentiated from general transactions	The circumstances and reasons for the transaction terms and reasons for transaction terms differentiated from general transactions	Accounts receivable	Accounts receivable
			Purchase (sale) of goods	Amount	as a percentage of total purchase (sale)	Credit term	Unit price	Credit term	Balance	As a percentage of total notes and accounts receivable (payable)	Note
UNI G METAL CO.	The Company	Substantive related party	Procurement	$ 415,497	36	Payment before shipment	No material deviation is found.	No material deviation is found.	$ -	-	Note

Note: The transaction terms require full payment before shipment. In general, the transaction terms are either full pre-shipment payment or the issuance of a full-value letter of credit. There is no significant difference in the purchase price compared to that of other suppliers.

Chien Shing Stainless Steel Co., Ltd.

Information on main investors

As of December 31, 2024

Table 3

Name of major shareholder	Shares
	Number of shares held	Shareholding ratio
Quintain Steel Co., LTD Shuo-Tang Yeh Tsu-Rong Dai CONCORD INTERNATIONAL SECURITIES CO., LTD	24,457,000 20,046,540 15,600,000 15,043,000	8.69% 7.12% 5.54% 5.35%

Note 1: This schedule discloses information on major shareholders holding 5% or more of the company's outstanding common shares that have completed dematerialized registration and delivery, as calculated by the Taiwan Depository & Clearing Corporation (TDCC) based on data from the last business day of the quarter. The share capital disclosed in the Company’s financial statements may differ from the number of shares that have actually completed dematerialized registration and delivery due to differing calculation bases.
Note 2: The aforementioned information will be disclosed by the trustors’ personal accounts settled by the trustees If the shareholders put the shares into a trust. For shareholder declarations pursuant to the Securities and Exchange Act regarding insiders holding over 10% of the shares, such holdings include shares held directly and those placed in trust over which the shareholder retains decision-making authority. Please refer to the Market Observation Post System (MOPS) for insider shareholding disclosures.

Chien Shing Stainless Steel Co., Ltd.

Schedule of Changes in Property, Plant and Equipment

For the Years January 1 through December 31, 2024 and 2023

Table 4

Unit: NT$ thousands

Cost Balance as of January 1, 2023 Additions Disposals Reclassification Balance as of December 31, 2023 Accumulated depreciation and accumulated impairment Balance as of January 1, 2023 Disposals Depreciation Balance as of December 31, 2023 Net Book Value as of December 31, 2023 Cost Balance as of January 1, 2024 Additions Disposals Reclassification Balance as of December 31, 2024 Accumulated depreciation and accumulated impairment Balance as of January 1, 2024 Disposals Depreciation Balance as of December 31, 2024 Net Book Value as of December 31, 2024		Land $ 182,341 - - 4,104) $ 178,237 $ - - - $ - $ 178,237 $ 178,237 - - - $ 178,237 $ - - - $ - $ 178,237		Buildings $ 369,313 - - 349 $ 369,662 $ 362,536 - 1,191 $ 363,727 $ 5,935 $ 369,662 - 1,196 ) 690 $ 369,156 $ 363,727 1,196 ) 1,170 $ 363,701 $ 5,455	Machinery and equipment $ 3,941,647 - ( 5,795 ) 17,798 $ 3,953,650 $ 3,788,361 ( 5,795 ) 33,058 $ 3,815,624 $ 138,026 $ 3,953,650 - ( 15,518 ) 15,319 $ 3,953,451 $ 3,815,624 ( 15,518 ) 34,437 $ 3,834,543 $ 118,908	Transport equipment $ 12,119 - ( 229 ) 1,164 $ 13,054 $ 10,546 ( 51 ) 961 $ 11,456 $ 1,598 $ 13,054 - ( 2,805 ) 2,190 $ 12,439 $ 11,456 ( 1,916 ) 640 $ 10,180 $ 2,259	Office equipment $ 9,428 - ( 78 ) 328 $ 9,678 $ 9,406 ( 78 ) 55 $ 9,383 $ 295 $ 9,678 - ( 874 ) 1,099 $ 9,903 $ 9,383 ( 874 ) 124 $ 8,633 $ 1,270	Otherequipment $ 33,321 - ( 339 ) 2,169 $ 35,151 $ 32,326 ( 339 ) 397 $ 32,384 $ 2,767 $ 35,151 - ( 1,098 ) 5,899 $ 39,952 $ 32,384 ( 1,098 ) 699 $ 31,985 $ 7,967	Construction in progress and equipment pending inspection $ 47,038 7,345 - ( 12,768) $ 41,615 $ - - - $ - $ 41,615 $ 41,615 15,786 - ( 13,467) $ 43,934 $ - - - $ - $ 43,934		Total
	(		( (		( ( ( (	( ( ( (	( ( ( (	( ( ( (	( (	( ( ( (	$ 4,595,207 7,345 6,441 ) 4,936 $ 4,601,047 $ 4,203,175 6,263 ) 35,662 $ 4,232,574 $ 368,473 $ 4,601,047 15,786 21,491 ) 11,730 $ 4,607,072 $ 4,232,574 20,602 ) 37,070 $ 4,249,042 $ 358,030

§INDEX OF SCHEDULES FOR SIGNIFICANT ACCOUNTING ITEMS§

Item
Schedules of Assets, Liabilities, and Equity Items
Schedule of Cash
Schedule of Financial Assets at Fair Value Through
Profit or Loss – Current
Schedule of Accounts Receivable
Schedule of Inventories
Schedule of Prepayments
Schedule of Other Current Assets
Schedule of Changes in Financial Assets at Fair Value
Through Other Comprehensive Income – Non-current
Schedule of Changes in Property, Plant and Equipment
Schedule of Changes in Accumulated Depreciation of
Property, Plant and Equipment
Schedule of Changes in Investment Property
Schedule of Deferred Income Tax Assets
Schedule of Notes Payable
Schedule of Accounts Payable
Schedule of Other Payables
Schedule of Other Current Liabilities
Schedule of Deferred Income Tax Liabilities
Schedules of Income and Expense Items
Schedule of Net Operating Revenue
Schedule of Operating Costs
Schedule of Selling Expenses
Schedule of Administrative Expenses
Schedule of Net Other Income and Expense
Schedule of Finance Costs
Functional Summary of Employee Benefits,
Depreciation, and Amortization Expenses for the
Period

No./Index

Schedule 1
Schedule 2
Schedule 3
Schedule 4
Schedule 5
Schedule 6
Schedule 7
Note 11
Note 11
Note 12
Note 20
Schedule 8
Schedule 9
Note 14
Schedule 10
Note 20
Schedule 11
Schedule 12
Schedule 13
Schedule 13
Note 19
Note 19
Schedule 14

Chien Shing Stainless Steel Co., Ltd.

Schedule of Cash

December 31, 2024

Schedule 1

Unit: NT$ thousands (Amounts in foreign currency)

Item Cash on hand Interest on bank deposits Check and demand (current) deposit Foreign currency deposits (Note)		Amount
		$ 1,378 76,644 22,959 99,603 $ 100,981

Note: USD 697,969.48 (US$1 = NT$32.74), RMB 3.71 (CNY$1 = NT$4.45), EUR 1.18 (EUR$1 = NT$33.94), and JPY 532,017 (JPY$1 = NT$0.21).

Chien Shing Stainless Steel Co., Ltd.

Schedule of Financial Assets at Fair Value Through Profit or Loss – Current As of December 31, 2024

Schedule 2

Unit: NT$ thousands (Unit price in NTD)

Name of securities TWSE-listed shares Eastern Media International Corporation Taita Chemical Company, Limited Hiyes International Co., Ltd. Taiwan Business Bank Yieh Phui Enterprise Co., Ltd. U-Tech Media Corporation TPEx-listed shares YFC-BonEagle Electric Co., Ltd. Shuang-Bang Industrial Corp. AVID Electronics Corp.	Units 876,225 561,000 9,293 303,158 453,482 948,000 868,000 400,000 8,066		Amount $ 14,545 7,686 1,868 4,502 6,870 16,353 23,610 6,680 406 $ 82,520	Market price	Market price	Market price
				Unit price (NTD) $ 16.60 13.70 201.00 14.85 15.15 17.25 27.20 16.70 50.40	Total amount
						$ 14,545 7,686 1,868 4,502 6,870 16,353 23,610 6,680 406 $ 82,520

Chien Shing Stainless Steel Co., Ltd.

Schedule of Accounts Receivable

As of December 31, 2024

Schedule 3

Unit: NT$ thousands

Name of client Lih Chan Steel Co. Ltd. Gang Jou Stainless Steel ENT Co., Ltd. Others (Note 2) Total Less: Allowance for loss Net amount	Summary Sales proceeds Sales proceeds		Amount
			$ 10,581 7,397 422 18,400 - $ 18,400

Note 1: The aging of each customer’s account does not exceed one year.

Note 2: The balance of each individual account does not exceed 5% of total accounts receivable.

Chien Shing Stainless Steel Co., Ltd.

Schedule of Inventories

As of December 31, 2024

Schedule 4

Unit: NT$ thousands

Item Merchandise Raw materials Supplies Work in progress Finished good		Amount
		Cost $ 129,807 247,568 15,125 190,956 63,164 $ 646,620	Market Price (Note)
			$ 131,009 247,568 16,190 193,966 64,280 $ 653,013

Note: Market price represents net realizable value.

Chien Shing Stainless Steel Co., Ltd.

Schedule of Prepayments

2024

Schedule 5

Unit: NT$ thousands

Item Office supplies Prepayment for purchases Offset against value-added tax payable Others		Amount
		$ 96,114 61,632 49,078 8,854 $ 215,678

Note: None of the individual balances exceeds 5% of the balance of the respective line item.

Chien Shing Stainless Steel Co., Ltd. Schedule of Other Current Assets As of December 31, 2024 Schedule 6 Unit: NT$ thousands Item Amount Temporary debits $ 370

Chien Shing Stainless Steel Co., Ltd.

Schedule of Changes in Financial Assets at Fair Value Through Other Comprehensive Income – Non-current January 1 through December 31, 2024

Schedule 7 Name Financial assets measured at fair value through other comprehensive income – non-current TWSE Listed Shares TRK Corporation Far EasTone Telecommunications Co., Ltd. TWSE/TPEx unlisted shares Ya Hsin Industrial Co., Ltd. Chien Tai Cement Co., Ltd. Taiwan Fluorescent Lamp Co., Ltd. Shin Yen Textile Co., Ltd Total	Opening	balance Amount $ 2,702 48,872 - - - - $ 51,574	Increase during the year No. of shares Amount - $ - - - - - - - - - - - $ -	Increase during the year No. of shares Amount - $ - - - - - - - - - - - $ -	Decrease during the year No. of shares Amount 144,505 $ 26,038 612,439 39,400 - 3,548 - - - - - - $ 68,986	Decrease during the year No. of shares Amount 144,505 $ 26,038 612,439 39,400 - 3,548 - - - - - - $ 68,986	Unrealized gain (loss) on financial instruments ( $ 81 ) 6,065 - - - - $ 5,984	Transferred to accumulated earnings $ 23,417 ( 15,537 ) 3,548 - - - $ 11,428		Closing balance		Amount $ - - - - - - $ -	Market price $ - - - - - - $ -	Unit: NT$ thousands Collateral or pledge Note －－－ Note 1 － Note 2 － Note 2 － Note 2	Unit: NT$ thousands Collateral or pledge Note －－－ Note 1 － Note 2 － Note 2 － Note 2
	No. of shares 144,505 612,439 595,337 44 100,000 203,000		No. of shares - - - - - -		No. of shares 144,505 612,439 - - - -				No. of shares - - 595,337 44 100,000 203,000	Shareholding Ratio (%) - - - - - -
							(	(							Note 1 Note 2 Note 2 Note 2

Note 1: Ya Hsin Industrial Co., Ltd. completed its bankruptcy termination procedures in 2023. However, the Company did not apply to the Investor Protection Center for the reorganization compensation of Ya Hsin Industrial Co., Ltd., which is deemed a voluntary waiver of its claim. Therefore, the acquisition cost was transferred to accumulated earnings during the current period. In addition, the Company has not canceled the registration of its shareholding with the Taiwan Depository & Clearing Corporation and thus still holds the shares. Note 2: The stocks of Chien Tai Cement Co., Ltd., Taiwan Fluorescent Lamp Co., Ltd., and Shin Yen Textile Co., Ltd. have been delisted and have no quoted prices on a public market.

Chien Shing Stainless Steel Co., Ltd.

Schedule of Notes Payable

As of December 31, 2024

Schedule 8

Unit: NT$ thousands

Title Radiance Automation Company Ltd. Taian Insurance Company, Ltd. Darsu Engineering Co., Ltd. Yungli Da Enterprise Co., Ltd. Zimi Chemicals Co., Ltd. Su Jian Industrial Co., Ltd. Others (Note)		Amount
		$ 2,094 1,936 1,806 1,799 1,276 1,098 2,256 $ 12,265

Note: The balance of each individual account does not exceed 5% of the total notes payable.

Chien Shing Stainless Steel Co., Ltd.

Schedule of Accounts Payable

As of December 31, 2024

Unit: NT$ thousands

Chien Shing Stainless Steel Co., Ltd. Schedule of Accounts Payable As of December 31, 2024	Chien Shing Stainless Steel Co., Ltd. Schedule of Accounts Payable As of December 31, 2024	Chien Shing Stainless Steel Co., Ltd. Schedule of Accounts Payable As of December 31, 2024
Schedule 9 Unit: NT$ thousands Vendor Name Amount GOLDEN HARBOUR INTERNATIONAL PTE. LTD. $ 28,195 Su Jian Industrial Co., Ltd. 2,888 Others (Note) 5,346 $ 36,429
		$ 28,195 2,888 5,346 $ 36,429

Note: The balance of each individual account does not exceed 5% of the total accounts payable.

Chien Shing Stainless Steel Co., Ltd.

Schedule of Other Current Liabilities

As of December 31, 2024

Unit: NT$ thousands

Chien Shing Stainless Steel Co., Ltd. Schedule of Other Current Liabilities As of December 31, 2024	Chien Shing Stainless Steel Co., Ltd. Schedule of Other Current Liabilities As of December 31, 2024	Chien Shing Stainless Steel Co., Ltd. Schedule of Other Current Liabilities As of December 31, 2024
Schedule 10 Unit: NT$ thousands Item Amount Liability of refund $ 20 Receipts under custody 351 $ 371
		$ 20 351 $ 371

Chien Shing Stainless Steel Co., Ltd. Schedule of Net Operating Revenue

Chien Shing Stainless Steel Co., Ltd. Schedule of Net Operating Revenue	Chien Shing Stainless Steel Co., Ltd. Schedule of Net Operating Revenue	Chien Shing Stainless Steel Co., Ltd. Schedule of Net Operating Revenue
2024 Schedule 11 Unit: NT$ thousands Item Sales Volume (tons) Amount Sales Revenue Stainless steel coils 17,237 $ 1,043,606 Processing Revenue Stainless steel coils 4,452 17,020 1,060,626 Less: Sales returns and allowances 2,300 $ 1,058,326
		$ 1,043,606 17,020 1,060,626 2,300 $ 1,058,326

Chien Shing Stainless Steel Co., Ltd.

Schedule of Operating Costs

2024

Unit: NT$ thousands

Chien Shing Stainless Steel Co., Ltd. Schedule of Operating Costs 2024
Schedule 12 I t e m Raw Material Consumption Raw materials at beginning of year Add: Purchases during the year Transfers from merchandise Valuation losses and bad debts Less: Scrap Raw materials at year-end Raw Material Consumption Supplies at beginning of year Add: Purchases during the year Inventory valuation and obsolescence losses Less: Reclassified to manufacturing overhead Supplies at year-end Supplies Consumption Direct labour Production overheads Manufacturing costs Add: Work in process at beginning of year Less: Valuation losses and bad debts Work in process at year-end Cost of finished goods Add: Finished goods at beginning of year Valuation losses and bad debts Less: Scrap of finished goods Finished goods at year-end Costs of sales for the self-made goods Merchandise inventory at beginning of year Add: Purchases during the year Less: Transferred to raw materials Valuation losses and bad debts Merchandise inventory at year-end Cost of Goods Sold Cost of Goods Sold Other operating costs Inventory valuation losses Scrap Losses Unallocated manufacturing overhead	Unit: NT$ thousands A m o u n t
		$ 94,078 1,091,234 9,364 6,403 1,081 247,568 952,430 13,508 23,361 20 21,764 15,125 - 10,543 99,193 1,062,166 186,772 22,277 190,956 1,035,705 202,880 17,635 2,735 63,164 1,190,321 68,995 76,585 9,364 5,828 129,807 581 1,190,902 4,047 3,816 64,511 $ 1,263,276

Chien Shing Stainless Steel Co., Ltd. Schedule of Operating Expenses As of December 31, 2024

Schedule 13

Unit: NT$ thousands

Item Salaries and bonuses Freight Export expenses Services expense Taxes and dues Others (Note)	Selling and marketing expenses $ 1,514 4,663 1,361 - - 454 $ 7,992	Administrative expenses $ 14,219 2 - 2,784 6,109 17,793 $ 40,907		Total
				$ 15,733 4,665 1,361 2,784 6,109 18,247 $ 48,899

Note: None of the individual balances exceeds 5% of the balance of the respective line item.

Chien Shing Stainless Steel Co., Ltd.

Functional Summary of Employee Benefits, Depreciation, and Amortization Expenses for the Period

2024 and 2023

Schedule 14

Unit: NT$ thousands

Employee benefits Salaries Labor and health insurance premiums Pension expenses Remuneration to directors Others Depreciation Amortization			2024	2024			Total $ 42,027 4,801 2,290 1,183 2,505 $ 52,806 $ 38,814 $ 20			2023	2023
		Operating cost $ 26,294 3,103 1,498 - 1,637 $ 32,532 $ 35,730 $ 14	Operating expenses $ 15,733 1,698 792 1,183 868 $ 20,274 $ 1,340 $ 6		Other gains or losses $ - - - - - $ - $ 1,744 $ -				Operating cost $ 20,567 2,430 1,183 - 943 $ 25,123 $ 34,241 $ 14	Operating expenses $ 10,191 1,227 582 1,257 522 $ 13,779 $ 1,421 $ 37		Other gains or losses $ - - - - - $ - $ 1,744 $ -		Total
														$ 30,758 3,657 1,765 1,257 1,465 $ 38,902 $ 37,406 $ 51

Note: The number of employees in the current and prior year was 80 and 65, respectively, including 7 directors not concurrently serving as employees in both years.

(1) The average employee benefit expense for the year was NT$707 thousand, calculated as: (Total employee benefit expense – Total remuneration to directors) ÷ (Number of employees – Number of directors not concurrently serving as employees). The average employee benefit expense in the previous year was NT$649 thousand, calculated as: (Total employee benefit expense – Total remuneration to directors) ÷ (Number of employees – Number of directors not concurrently serving as employees).
(2) The average employee salary expense for the year was NT$576 thousand, calculated as: Total salary expense ÷ (Number of employees – Number of directors not concurrently serving as employees). The average employee salary expense in the previous year was NT$530 thousand, calculated as: Total salary expense ÷ (Number of employees – Number of directors not concurrently serving as employees).
(3) The average employee salary expense increased by 8.67%, calculated as: (Average employee salary expense for the current year – Average employee salary expense for the previous year) ÷ Average employee salary expense for the previous year.
(4) Remuneration paid to independent directors in the current year was NT$566 thousand. Remuneration paid to independent directors in the previous year was NT$574 thousand.
(5) The Company’s compensation policy (including for directors, the Audit Committee, managerial officers, and employees) is as follows:
A. Remuneration of Directors, Audit Committee Members, and Managerial Officers: The Company’s remuneration is determined in accordance with the “Regulations Governing the Remuneration Committee’s Powers and Duties” and is reviewed by the Remuneration Committee, with reference to industry standards. Key factors considered include time commitment, responsibilities, achievement of individual goals, performance in other roles, historical compensation for comparable positions, the Company’s short- and long-term business performance, financial condition, and the alignment of individual performance with the Company’s results and future risks. The Articles of Incorporation stipulate that if the Company reports a profit, up to 1% of annual profit may be allocated as directors’ remuneration.
B. Employee Compensation: The Company’s employee compensation policy (including base salary, allowances, job premiums, overtime pay, and bonuses) is determined based on prevailing market standards, job functions, rank, education, work experience, professional capability, and responsibilities. Bonuses and adjustments are contingent upon the Company’s profitability and the achievement of departmental and individual goals. The Articles of Incorporation stipulate that if the Company reports a profit, 2% to 3% shall be distributed as employee remuneration.

AI assistant

CSSSC — Annual Report 2024

51952_rns_2024-11-14_c3996f15-5365-4c67-ae67-8e3a8490b211.pdf

Individual Financial Statements Table of Contents

CPAs’ Audit Report

Audit opinion

Basis for Opinion

Key Audit Matters

Valuation of Inventories

Other Matters

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

Auditors’ Responsibilities for the Audit of the Financial Statements

Deloitte & Touche

Chien Shing Stainless Steel Co., Ltd Balance Sheet

Chien Shing Stainless Steel Co., Ltd

Statement of Comprehensive Income

(Continued from the previous page)

Chien Shing Stainless Steel Co., Ltd

Statement of Changes in Equity

Chien Shing Stainless Steel Co., Ltd

Cash Flow Statements

Unit: NTD thousand

(Continued from the previous page)

Notes to the Financial Statements

I. Company History

II. Approval Date and Procedures of the Financial Statements

III. Application of New and Revised International Financial Reporting Standards

(IV) Foreign Currency

(V) Inventories

(VI) Property, Plant, and Equipment

(VII) Investment Property

(VIII) Intangible Assets

1. Separately Acquired

2. Derecognition

(3) Derecognition of Financial Assets

2. Financial Liabilities

(1) Subsequent Measurement

(2) Derecognition of Financial Liabilities

(XI) Provisions

Onerous Contracts

(XII) Revenue Recognition

Income from product sales

(XIII) Leases

The Company is the lessor

(XIV) Borrowing Costs

(XV) Employee Benefits

1. Short-Term Employee Benefits

2. Post-Employment Benefits

(XVI) Income Tax

1. Current Income Tax

2. Deferred Income Tax

3. Current and Deferred Income Tax

V. Major Sources of Estimation Uncertainty in Critical Accounting Judgments, Estimates, and

Assumptions

Key Sources of Estimation Uncertainty

Inventory Impairment

VI. Cash

XII. Investment Property

XIII. Notes Payable and Accounts Payable

XIV. Other Liabilities

(I) Defined Contribution Plans

(II) Defined Benefit Plan

XVII. Equity

Ordinary shares

(II) Retained Earnings and Dividend Policy

Unrealized gains and losses on financial assets measured at fair value through other comprehensive income (FVOCI)

XVIII. Revenue

(I) Description of Customer Contracts

Revenue from sales of goods and rendering of services

(II) Contract Balances

(II) Interest Income

(VII) Employee Benefit Expenses

(VIII) Employees’ Compensation and Directors’ Remuneration

XX. Income Tax

(I) Income Tax Recognized in Profit or Loss

(II) Income Tax Recognized in Other Comprehensive Income

(III) Deferred Income Tax Assets and Liabilities

(IV) Information on Unused Loss Carryforwards

(V) Status of Income Tax Assessments

XXI. Earnings (Loss) Per Share

CSSSC Annual Report 2024